Upturn in Italian fashions

For the first time since the terrorist attack on the Twin Towers in 2001, Italian fashion houses are showing clear signs of a recovery according to a survey carried out by Pambianco Strategie di Impresa on the half-yearly figures from the main Italian fashion groups listed on the Stock Exchange.

The sample consisted of 10 companies, (Benetton, Bulgari, Burani, Csp, It Holding, Luxottica, Marzotto, Tod's, Marcolin and Stefanel), with total billings for the first six months 2004 of 4,930 million €.

The analysis shows the following data:
- six-monthly billings have risen by 3.8% against a downturn of 6% in 2003 compared to 2002. The companies which have grown the most are, in descending order, Mariella Burani (+17%), Marcolin (+15.5%), Tod's (+13.5% against +3.8 for the first six months of 2003);
- Ebitda (for 8 companies) rose from 11.1% to 11.8%. The best in percentage terms are Marcolin (+45%), Marzotto (+21%), Bulgari (+13%);
- net profits (for 6 companies) rose from 5.3 to 6.9%. The best in absolute value are, in descending order, Bulgari with net profits of 9.6%, Luxottica with 9.6% and Benetton with 7.9%. The best in percentage terms (from the first six months of 2003 to the first six months of 2004) are Marzotto, passing from -1% to +1.2%, Benetton from 5.2% to 7.9% and Bulgari from 7.6% to 9.6%.

The analysis shows that, for the first time since the crisis began in 2001, there is a reversal in the trend for listed companies and billings are on the increase (+3.6%). Profitability (net profits) also shows the first signs of recovery, rising from 5.3% to 6.9%. In previous years this had gradually dropped from 9.2% in 1990 to 8% in 2000, 6.4% in 2001, 6.3% in 2002, and 5.5% in 2003.

According to Pambianco, a further slight improvement in the situation (billings and profits) is expected for the second half of 2004. However, it is 2005 that will see the real beginning of a substantial rise in billings and profits.